STONE WOOD OUTLET MEDIA PLAN M A L A E A
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M E R I S S A
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TABLE OF CONTENTS
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advertising/ media objectives
background target audiences
20 schedule
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10
media strategy
22 23 budget
analysis
Like many other categories, the home improvement category has experienced a slowdown in sales due to the recession. However, “Mintel forecasts growth to accelerate in 2011 and to remain positive through 2015.” Factors that they attribute to this growth include demand from people who have wanted to do home improvement projects but put it off due to the economy. As for the logistics of home improvement projects the trends indicate that younger adults are more likely to be DIYers, while “Aging Baby Boomers, retirees, and upper-income households are key groups for professional services as the likelihood of hiring help for remodeling… tends to increase for these demographics.” This may correlate to the fact that young adults are in the lifestyle phase of buying a first home, settling down, and starting a family. Adults 25-34 are the “most willing to take on debt to improve their homes.” Source: Mintel report-Home Improvement-February 2011
BACKGROUND
competition
market category
Being in a large market, Stone Wood Outlet has a lot of competition. Like many small businesses their main competition is the giant corporate competitors. In the Portland area these are Lowe’s and Home Depot. Each have huge ad budgets and a high level of brand awareness. A third perhaps less well-known competitor is Lumber Liquidators. They are almost nationwide and focus primarily on their low prices.
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ADVERTISING/MEDIA OBJECTIVES
advertising objectives
20 30 10 Raise brand awareness of Stone Wood Outlet by
percent throughout the campaign
media objectives 4
Increase store traffic by
percent at the new location during kick-off month and following month
Increase traffic in all locations by
percent throughout the campaign
Advertise to frequent DIYers in the Portland Metro Area. The demographics include:
Men age 25-44 Women age 25-44 Hispanic Adults
Use various media vehicles throughout the year to promote brand recognition among the target audiences.
Moving into a first home, buying a new home, and starting a family propel Do-It-Yourself (DIY) activity. Although people over age 44 do home improvement/DIY projects people age 25-44 do more projects in a year on average. 25-34: 2.98 DIY projects in the past 12 months, 70% have done DIY projects in past year 35-44: 2.77 DIY projects in the past 12 months. 61% have done DIY projects in the past year
TARGET AUDIENCES
generalinfo People age 25-34 spend the most time with media, averaging
hours per week with media
DIY activity is highest among those with a household income between $50k and $149.9 k
Households with kids are 20% more likely to do DIY home improvements and DIYers with 2 or more children undertake the most projects.
Increased use of media in the 25-34 age group is partially due to the presence of children in the home
People age 35-44 spend the second most time with media, averaging
hours per week with media
Source: Mintel report- Home Improvement DIY projects Done in Past 12 Months and Mintel report- Media Usage-US Sept. 2010
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TARGET AUDIENCES-MEN
who...
Are age 25-44 Are homeowners Have families Have a HH income between $50k-$150k
68 percent of men have done DIY home improvement projects in the past 12 months
Men partake in approximately
Men Age 25-49 Daily Media Consumption:
DIY projects per year
Sources: Mintel report- Home Improvement DIY projects Done in Past 12 Months & Source: Television Bureau of Advertising-Media Comparisons-Men
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Television- 273 minutes per day Newspapers- 19.8 minutes per day Radio- 96 minutes per day Magazines- 12.6 minutes per day Internet- 161.4 minutes per day
who...
TARGET AUDIENCES-WOMEN Are age 25-44 Are homeowners Have families Have a HH income between $50k-$150k
women Women partake in approximately
Women Age 25-49 Daily Media Consumption: Television- 274.2 minutes per day Newspapers- 21 minutes per day Radio- 105 minutes per day Magazines- 15.6 minutes per day Internet- 175.2 minutes per day
DIY projects per year
percent of women have done DIY home improvement projects in the past 12 months
Sources: Mintel report- Home Improvement DIY projects Done in Past 12 Months & Television Bureau of Advertising-Media Comparisons-Women
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TARGET AUDIENCES-HISPANICS
hispanic adults Hispanics have high levels of interest in home improvement. Hispanics are the most likely to have undertaken DIY activity in the last year, and spend almost as much as Caucasians on home improvement.
65 percent of Hispanics have done DIY home improvement projects in the past 12 months
Source: Mintel report- Home Improvement DIY projects Done in Past 12 Months
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the number of DIY projects Hispanics have done in the past year Mean amount spent on home improvements: Caucasians: $1,467 Hispanics: $1,459 Money is the top barrier for undertaking a major project for Hispanics. Hispanics are less likely to cite a lack of skills or tools, which may mean that they are more willing and confident to take on DIY projects.
TARGET AUDIENCES-HISPANICS Because of their large Hispanic population, we have decided to focus on and when it comes to targeting Hispanics.
Woodburn
Hillsboro, Oregon
“Woodburn was 50% Hispanic according to the 2000 Census.” “Woodburn has a high rate of Latino home ownership.” “Hillsboro was 19% Hispanic according to the 2000 Census.” “74% of Portland market Hispanics speak Spanish at home.” “55% of Hispanic households have kids.”
HISPANIC MEDIA USAGE
$63,995
40% watch between 1 and 3 hours a day of Spanish TV 30% watch between 1 and 3 hours a day of English TV
average household income in the 2000 Census
60% of US Hispanics listen to Spanish language radio (Acculturation 3- Mostly Spanish)
Sources: Portland, Oregon Hyper-Growth Hispanic Market PDF by Univision Northwest & Nielsen A Snapshot of Hispanic Media Usage in the U.S.
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MEDIA STRATEGY
outdoor
# of boards x cost per board = Cost per month 50 x $700 = $35,000 Cost per month x # of months = Subtotal cost 1 $35,000 x 2 = $70,000
*August & April (50% Poster Showing)
Posters in 3 distinct areas. 1. Within 5 miles of Lowe’s and Home Depot stores (12 boards) 2. Hillsboro (19 boards) 3. Woodburn (19 boards)
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# of boards x cost per board = cost per month 33 x $700 = $23,100 Cost per month x # of months = Subtotal cost 2 $23,100 x 2 = $46,200
Number of boards based on a 75% showing
The boards in Hillsboro and Woodburn are targeting Hispanic adults and the copy will be in Spanish. The posters near competitors will be used to target all three audiences, and thus will be in English. Due to the location of the boards in neighborhoods we chose to only buy posters. Outdoor will run in July, August, April, and June. The showing level in July is 75%. Because July kicks-off the campaign, we wanted it to be at the highest level. Not only will these posters raise awareness of the brand, but also of the grand opening. In August we will reinforce the brand after the grand opening at a showing level of 50%. This allows us
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*July & June (75% Poster Showing)
Subtotal cost 1 + Subtotal cost 2 = Total cost for Outdoor
$70,000 + $46,200 = $116,200
to keep a strong brand presence in the market. Also, parents will be spending an increased amount of time in their cars due to back-to-school shopping. Because it is a lower showing level there will be 11 boards in Hillsboro and 10 boards in Woodburn. We chose to place more boards in Hillsboro because it is closer to Stone Wood Outlet locations. April kicks-off decking season so we are bringing back outdoor advertisements at a 50% showing level. Boards will be placed the same as in August. June is right in the middle of decking season and the end of our campaign. We wanted to end the campaign with a high level of brand presence in the market, so the showing level is 75% with the same placement as in July.
KEY Stone Wood Outlet Lowe’s Home Depot
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MEDIA STRATEGY
magazine
By choosing magazine, we are able to directly reach our target audience through specific interests. We chose Sunset Magazine to target women, and Family Handyman Magazine to target men. The readers of these magazines are already interested in outdoor living, home improvement, and DIY projects. By using magazine, we are able to place our advertisements based on the editorial calendar, increasing relevancy to readers. The months we are featured in Sunset or Family Handyman Magazine have been carefully selected to coincide with that month’s content. Sunset and Family Handyman Magazine have built up years of loyalty and credibility with readers, which will reinforce the authority of our advertisements.
Family Handyman $4,367.34
*Full-page 4 color ad *Cost of ad / (circulation x .001) = CPM $105,260 / (1,155,956 x .001) = $91.06 * CPM x (Oregon circulation x .001) = Cost per ad geo-targeted to Oregon $91.06 x (15,987 x .001) = $1,455.78 * Cost per ad x number of insertions = Cost for Family Handyman $1,455.78 x 3 = $4,367.34
Sunset Magazine $75,600 *1/2 page 4 color ad *Geo-targeted to Pacific NW * Cost per ad x number of insertions = Cost for Sunset Magazine $25,200 x 3 = $75,600
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Editorial Calendar Match-up Sunset Magazine
October- Fall Travel and Bargains Issue March- The Great Makeover Issue June- Backyard Living Issue
Family Handyman Magazine July/Aug. Issue- Summer Projects Issue October- Kitchen and Bath Issue (Featuring the section “Solid Counter Tops
for DIYers”)
May- Protect Your Home/Pro Special Issue (Featuring the section “Build Your Own
Dream Deck”)
radio Station 93.1 El Rey (Hispanic) 93.1 El Rey (Hispanic) 93.1 El Rey (Hispanic)
MEDIA STRATEGY Time 6a-10a 10a-3p 3p-7p
total=
# of Spots total Cost Total Ratings 408 $14,280 204 510 $17,850 255 408 $11,424 163.2 1326
$43,554
622.2
Because 60% of Hispanics listen to Spanish language radio, we will advertise on 93.1FM El Rey. Our 15-second spots will run every Monday, Wednesday, and Friday starting January 2nd and ending April 27th. There isn’t much variation in the ratings for El Rey depending on daypart, so we are advertising from 6am until 7pm. We will run 2 spots per hour for a total of 26 spots per day. Ads will run for 17 weeks incorporating New Years resolutions for home improvement, through the kick-off of decking season. It will also help to sustain awareness of the campaign in the Hispanic audience throughout the winter and beginning of spring.
Source: Nielsen A Snapshot of Hispanic Media Usage in the U.S.
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MEDIA STRATEGY YOUTUBE CHANNEL We will expand the Stone Wood Outlet YouTube page to include skill development videos. Although money is the biggest barrier for undertaking DIY activities, 15% of whites and 12% of Hispanics reported lack of skills as the second biggest barrier. Stone Wood Outlet prides itself on the knowledgeable staff that works at each location. We will have one associate each month demonstrate that expertise through a skill development video. The videos will correspond to the various inventories that Stone Wood Outlet has to offer. It will be posted on the YouTube site the first week of each month. We can measure the success of this tactic by the number of views each video gets each month. This will provide us with insight into what projects people are most interested in.
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SEARCH ENGINE OPTIMIZATION The Internet provides a wealth of information and is often the first place a person turns to when conducting research. Because remodeling is high involvement and high cost, people like to do a lot of research, planning, and comparing. We want to ensure that when people in the Portland market search home improvement terms, Stone Wood Outlet is one of the top choices that come up. This is why we have decided to hire an Internet Marketing Company to do our Search Engine Optimization. We have allocated $10,000 to make sure that Stone Wood Outlet reaches its full SEO potential by having experts in this field manage this portion of the campaign.
online
Sources: Home Improvement- US- February 2011 & http://www.optimum7. com/internet-marketing/ seo/how-much-does-seosearch-engine-optimization-cost.html
Number of Spots 5 5 7 8 8
Cost $308.00 $770.00 $1,419.60 $2,275.20 $2,520.00
Total Rating points 2 5 8.4 14.4 14.4
5 7 5 5 8
$616.00 $1,509.20 $920.00 $1,001.00 $2,660.00
4 9.8 5 6.5 15.2
KOIN LCL6 @5am KOIN LCL6 @6am KOIN LCL6 @11pm
5 5 10
$154.00 $308.00 $4,725.00
1 2 27
Good Day @ 5am Good Day @ 6am Good Day Oregon (7-8) Good Day Oregon (8-9) 4:00 News 5:00 News 10:00 News (10-10:30) 10:00 News (10:30-11) 11:00 News
5 7 9 8 5 7 10 9 8
$693.00 $1,293.60 $3,326.40 $2,340.80 $760.50 $1,216.60 $14,364.00 $8,845.20 $2,240.00
4.5 8.4 21.6 15.2 4.5 7.7 38 23.4 12.8
151
$54,266.10
250.8
Day Part EM EM EF EN LN
KATU KATU KATU KATU KATU
Program NW Morning @5am NW Morning @6am NWS 1st @4PM NEWS @6PM NEWS @11PM
EM EM DT PA LN
NC8 Sunrise @5am NC8 Sunrise @6am Newschannel 8 @ noon Live @ 7pm Newschannel 8 @ 11pm
EM EM LN EM EM EM EM EF EN PT PT LN
total=
MEDIA STRATEGY
television Television will only be used to advertise the grand opening of the new location. Our ads will run August 1st-5th, leading up to the grand opening. Due to the content of the ads, we will be running on local news programs on ABC, NBC, CBS and FOX. Our strategy is to run on every news program at least once per day. News programs with higher ratings have more spots designated to them. With this strategy we ensure that we reach our target audiences regardless of daypart or station preferences. The placement of ads during news programs allows us to engage with them while they’re thinking about their community and local issues.
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MEDIA STRATEGY
newspaper The Oregonian has over 1,388,600 readers. With newspaper, we plan to reach our target audience by advertising to them locally. The Oregonian is the most widely read paper in Portland and will be ideal in reaching our target audiences. Our ads will run throughout July: Thursdays in the Metro Section Saturdays in the Community News Sunday, July 31st in the Home & Gardens Section These 9 ads will be geared towards promoting the grand opening on August 6th.
Source: http://biz.oregonian.com/adresources/
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the oregonian *1/2 Page Black and White ad (3 columns) x 5.175 inches= 15.525 column inches *Runs every Thursday & Saturday in July Cost per column inch x column inches = cost per ad $35.49 x 15.525 = $550.98 cost per ad x number of ads = cost for month $550.98 x 8 = $4,407.84 *Runs Sunday July 31st cost per column inch x column inches = Cost for Sunday $121.39 x 15.525 = $1,884.58 Sunday ad + 8 Thursday/Saturday ads = total cost of newspaper $1,884.58 + $4,407.84 = $6,292.42
Radio DJ Food Tables Chairs Umbrellas BBQ's Printing Costs
total=
$2,000 $1,500 $780 $675 $660 $720 $1,000 $7,335
MEDIA STRATEGY
grand
opening
On August 6th, we will be hosting a grand opening BBQ at the new Stone Wood Outlet location. The BBQ will focus on Stone Wood Outlet’s decking products and will feature a deck with table and chairs for people to eat and socialize. The setting of this event will allow members of our target audiences to imagine themselves enjoying summer on their own Stone Wood Outlet deck. K103, Portland’s most popular radio station, will be DJing the event. Through the grand opening, we hope to raise brand awareness of Stone Wood Outlet, with an emphasis on the new location.
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MEDIA STRATEGY
non-traditional MALL POP-UP SCENES With our pop-up scenes, we plan to reach our target audiences at two peak shopping points in the year: back-toschool shopping and holiday shopping. We will target backto-school shoppers in August and September and holiday shoppers from November 13th-December 10th. Our pop-up scenes will focus on Stone Wood Outlet’s indoor items such as hardwood floors, counter tops, tiles, and cabinets. We will create an indoor scene in the mall to draw the attention of mall-goers. Each item used in the scene will be linked to a QR code that will take shoppers di*August & September rectly to the page of the website the item is featured on. We # of kiosks x Cost per kiosk = cost per pop-up scene will evaluate the success of the pop-up stores by monitoring 4 x $3,000 = $12,000 traffic on the website.
try it!
Cost per scene x number of executions = subtotal 1 $12,000 x 2 = $24,000 * November/December Kiosk price doubles # of kiosks x cost per kiosk = cost per scene *Based on the cost of 4 kiosks at the most expensive 4 x $6,000 = $24,000 quote ($3,000 per month). Cost per scene x number of executions = subtotal 2 *Runs in August in Washington Square Mall, Runs $24,000 x 1 = $24,000 in September in Clackamas Town Center, Runs in Subtotal 1 + Subtotal 2 = cost for pop-up scenes Nov/Dec in whichever mall does the best $24,000 + $24,000 = $48,000
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SHOW EXHIBITIONS Throughout the campaign, we will be participating in 4 shows including:
MEDIA STRATEGY
Portland Fall Home & Garden Show September 29-October 2 Portland Build, Remodel, & Landscape Show January 6-8 Portland Renovation & Remodeling Show January 27-29 Portland Home & Garden Show February 22-26 Show exhibitions are the perfect way to connect with our target audience. People who come to these shows are local, looking to improve their homes and possibly even ready to make purchases. Having a booth at these shows is a cost effective way to personally get in touch with our target audience.
*Portland Fall Home and Garden Show = $900 *Portland Home and Garden Show = $1,050 *Total of all booths = $900 + $1,050 +$1,000 + $1,000
Total for all booths = $3,950
NOTE: We didn’t get exact figures for Portland Build, Remodel, and Landscape show or for the Portland Renovation and Remodeling Show so we budgeted $1,000 for each booth for a total of $2,000.
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SCHEDULE JULY 1
Outdoor SEO Youtube Pop-up Scenes Family Handyman Sunset Television Show Exhibitions Newspaper Grand Opening Radio
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2
3
AUGUST 4
5
6
7
8
SEPTEMBER OCTOBER 9
10
11
12
13
14
15
16
17
NOVEMBER 18
19
20
21
22
DECEMBER 23
24
25
26
SCHEDULE JANUARY 27
28
29
30
FEBRUARY 31
32
33
34
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MARCH 36
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APRIL 39
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MAY 43
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JUNE 47
48
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Outdoor SEO Youtube Pop-up Scenes Family Handyman Sunset Television Show Exhibitions Newspaper Grand Opening Radio
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BUDGET Grand Opening $7,335 2%
Analysis $30,000 7% Radio $43,554 11%
Outdoor $116,200 29%
Newspaper $6,292.42 2% Show Exhibitions $3,950 1%
Television $54,266.10 14%
Total Spent: $399,564.86 SEO $10,000 2%
$435.14
unspent
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Sunset Magazine $75,600 19%
Pop-up Scenes $48,000 12% Familly Handyman Magazine $4,367.34 1%
ANALYSIS We have budgeted $30,000 dollars to hire a professional agency to measure the success of our campaign. Because we want the analysis to be very detailed by each medium, it is the most cost-effective to have it done professionally. It will also allow us to focus our energy on ensuring the campaign is running correctly. This will benefit future campaigns because we will have information on things such as effective frequency, as well as the most effective medium for each target audience. Ultimately we believe that this will be the best bang for our buck.
sources:
Mintel report-Home Improvement-Feb. 2011 Mintel report-Home Improvement DIY projects Done in Past 12 Months-Feb. 2011 Mintel report- Media Usage-US Sept. 2010 Television Bureau of Advertising-Media Comparisons-Women Television Bureau of Advertising-Media Comparisons-Men Portland, Oregon Hyper-Growth Hispanic Market PDF by Univision Northwest Nielsen A Snapshot of Hispanic Media Usage in the U.S. http://www.optimum7.com/internet-marketing/seo/how-much-does-seo-search-engine-optimization-cost.html http://biz.oregonian.com/adresources/
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M A L A E A
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M E R I S S A
A DV E R T I S I N G 24